Cyanotech Japan will initially market NatuRose(R) and Spirulina Pacifica(R) to the Japanese animal feed market and later offer BioAstin(R) and Spirulina Pacifica to the human nutrition market. Current customers for animal feed products will transition to Cyanotech Japan by the end of March 2002.

Aquaculture feeding studies in Japan have shown that NatuRose is more effective than synthetic astaxanthin, particularly for species such as Sea Bream or "Tai," a major aquaculture product in Japan. NatuRose has also been shown to be very effective when used with other species of fish and land animals.

"The increasing acceptance of our products in one of the world's major economies caused us to form the new business unit," said Gerald R. Cysewski, Ph.D., chairman, president and CEO. "We are pleased to see this growing demand in the Japanese market, which holds significant potential for Cyanotech, particularly for our NatuRose product."

-- Cyanotech Corporation, the world's leader in microalgae technology, produces high-value natural products from microalgae, and is the world's largest commercial producer of natural astaxanthin (pronounced "asta-zan-thin") from microalgae. Products include BioAstin(R) natural astaxanthin, a powerful antioxidant with expanding applications as a human nutraceutical; NatuRose(R) natural astaxanthin for the aquaculture and animal feed industries; Spirulina Pacifica(R), a nutrient-rich dietary supplement; and phycobiliproteins, which are fluorescent pigments used in the immunological diagnostics market. Spirulina and BioAstin are sold directly online through www.nutrex-hawaii.com and through resellers worldwide. Corporate and product information is available at www.cyanotech.com